Does Accredited Debt Relief Hurt Your Credit?
Debt is a problem that millions of Americans face today. If you’re struggling with multiple debts, finding a way out can be a challenge. Accredited Debt Relief is a company that provides assistance to people who need help managing their debts. However, one of the questions that often arise when considering debt relief options is whether it will hurt your credit or not.
In this article, we’ll discuss whether Accredited Debt Relief hurts your credit, and what you need to know before considering their services.
Accredited Debt Relief: An Overview
Accredited Debt Relief is a debt settlement company that helps individuals who are having a hard time paying off their debts. The company works with creditors on behalf of clients to negotiate a settlement for less than the amount owed. Accredited Debt Relief offers free consultations to determine if their services align with your financial goals.
The company offers debt settlement services, which means that they negotiate with your creditors to lower the total amount you owe. This kind of debt settlement is different from debt consolidation, which combines your existing debts into one new loan with a lower interest rate.
Does Accredited Debt Relief Hurt Your Credit?
The answer to this question is not straightforward. Accredited Debt Relief can hurt your credit score in the short term, but the damage may not be long-lasting.
When you choose to work with Accredited Debt Relief, you will typically have to stop making payments on your debts. This can cause your credit score to drop since payment history is one of the most critical factors that impact your credit score. However, if you’re struggling to make payments anyway, your credit score is probably already taking a hit.
As Accredited Debt Relief negotiates your debts, your credit score may continue to drop as your debts remain unpaid. However, once a settlement is reached and you start making payments, your credit score should begin to improve.
It’s essential to note that the impact on your credit score will likely vary depending on your circumstances. If you have a high credit score to start with, the impact of non-payment and the fallout from the settlement negotiations may be more significant than if your credit score is already poor.
How Long Does the Impact on Your Credit Last?
The impact on your credit score from Accredited Debt Relief can last for up to seven years. When you stop making payments, your creditors will report it to the credit bureaus, and this will negatively affect your credit score. Late payments, accounts in collections, and accounts that have been settled will all show up on your credit report and stay there for several years.
Creditors may also mark your accounts as “settled” instead of “paid in full,” and this can negatively impact your credit score. A settled account shows that you didn’t pay the full amount you owed, and that can be a red flag for potential lenders.
It’s important to note that if you settle your debts and start making payments on time, your credit score will begin to improve. However, it will take time for your credit score to recover fully.
What Are the Benefits of Working with Accredited Debt Relief?
Despite the negative impact on your credit score, working with Accredited Debt Relief can be beneficial for several reasons.
First, the company negotiates with your creditors to settle your debts for less than the total amount owed. This can provide significant financial relief for those struggling with debt.
Second, Accredited Debt Relief can help you avoid bankruptcy, which can have long-lasting effects on your credit score. A bankruptcy stays on your credit report for up to ten years and can make it difficult to get credit in the future.
Third, Accredited Debt Relief provides support and guidance throughout the debt settlement process. If you’re struggling with debt and feeling overwhelmed, having a professional on your side can provide peace of mind.
Q: How much does Accredited Debt Relief charge for their services?
A: Accredited Debt Relief charges a performance-based fee, which means they only get paid if they successfully negotiate a settlement for you. The fee is typically a percentage of the total amount saved through the settlement.
Q: Can Accredited Debt Relief help with all types of debt?
A: Accredited Debt Relief can help with most unsecured debts, including credit card debt, medical bills, and personal loans. However, they cannot help with secured debts, such as car loans or mortgages.
Q: How long does the debt settlement process take?
A: The debt settlement process can take anywhere from 24-48 months, depending on your situation.
Q: Will I be responsible for taxes on the amount settled?
A: Yes, you may be responsible for paying taxes on the amount settled. The settled amount may be considered income by the IRS.
In conclusion, Accredited Debt Relief can hurt your credit score in the short term, but the damage may not be long-lasting. The impact on your credit score will likely vary depending on your circumstances, and it may take several years for your credit score to fully recover.
Working with Accredited Debt Relief can provide significant financial relief and help you avoid bankruptcy. The company charges a performance-based fee, negotiates with your creditors to settle your debts for less than the total amount owed, and provides support and guidance throughout the process.
When considering Accredited Debt Relief or any debt settlement company, it’s essential to do your research and make an informed decision. Understanding the potential impact on your credit score and the benefits of debt settlement can help you make the right choice for your financial situation.
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Accredited Debt Relief is a debt settlement company that can help individuals who are unable to pay off their debts. The company offers debt settlement services, which means that they negotiate with your creditors to lower the total amount you owe. While working with Accredited Debt Relief can hurt your credit score, the damage may not be long-lasting. The impact on your credit score will vary depending on your circumstances, but it can last up to seven years. The company charges a performance-based fee and provides support and guidance throughout the debt settlement process.